With the “fiscal cliff” looming and debt reduction talks ongoing in Congress, the 2012 tax code is still up for discussion, and while some local tax preparers are suggesting putting the brakes on starting your tax returns, others say the more prepared you are, the better.

Unless Congress takes action by Monday night, American taxpayers will be looking at a $536 billion tax increase over the next decade, according to reports by The Associated Press.

President Barack Obama resumed talks with congressional leaders at the White House Friday, hoping to reach a compromise and avoid the year-end “fiscal cliff” that would lead to across-the-board tax increases for American taxpayers and large spending cuts for the government; but with no compromise reached by the end of the day Friday, tax preparers still don’t know what to expect for the upcoming tax season.

“This year there’s all of this tax stuff that’s still up in arms,” said Nancy Flemming, owner of a local H&R Block franchise on Western Boulevard. “We’re still waiting to hear if they’re going to pass some of the extensions and some of the things that expired at the end of 2011.”

Among the expiring tax credits up for discussion in Congress are educator expenses that allow teachers to write off up to $250 per year for supplies bought for the classroom and tuition breaks that allow students to receive a partial refund for college tuition expenses, Flemming said.

“If they don’t get anything done this weekend ... it’s probably best to not file (taxes) the first two weeks of January because so much is going to be up in the air,” Flemming said, while instead suggesting filers wait until around Jan. 20 to start preparing their taxes because that’s when the IRS will begin accepting returns.

In past years, the IRS opened their doors for returns on Jan. 13, but this year they will not start accepting returns until Jan. 22.

“We are advising to not wait and start early,” Tutherow said. “Although there are a lot of things up in the air and a lot of things are subject to change, the worst thing you can do is wait.”

Tutherow said taxpayers should be prepared for definite changes to the tax code, like a new 2 percent increase in social security tax, while also preparing for whatever “fiscal cliff” talks may bring, including possible tax increases and expiring tax credits.

Definite changes to the tax code include a lower cap on education savings accounts for children, an automatic 2 percent increase on social security payroll tax deductions and a more difficult process for claiming dependents on your taxes, to include proof of dependency far beyond just a social security number.

While the payroll deductions won’t necessarily affect 2012 tax returns, it will leave taxpayers wanting to file returns early to make up for the pay loss — something that just might be not be possible because of the lagging Congressional discussions and late opening of the IRS, Tutherow said.

“We want everybody to be prepared for anything that may affect their pocket,” she added.

Jeffrey Serbus, owner of 11 Liberty Tax offices throughout Eastern North Carolina, said while the IRS will not be accepting returns until near the end of January, there’s no real reason to hold off on starting your 2012 tax returns.

“Most of the forms have already come down — there’s just a couple that haven’t,” Serbus said, adding that those who own rental properties or small businesses are the only people who should wait to file returns, because the proper forms have not yet been generated.

Otherwise, Serbus said, “simple (returns) that don’t include rental properties and businesses, we can prepare once they get their W-2s. The IRS isn’t going to open up until the 22nd ... but we can get 99 percent of the work done.”

Serbus said if taxes are filed before changes are made to the tax code, all people will have to do is file an amendment.

“The IRS is basically going off the current code,” he said. “We have everything in place for the current code so if worst case scenario — if something unexpected happens — it would be a matter of filing a simple amendment.”

In addition to waiting to open their doors, the IRS has said that returns will take up to a week longer than usual to be processed. While taxpayers could normally expect a refund check within eight to 14 days of filing their returns, Tutherow said the IRS has advised people to be prepared to wait up to a week longer to see their money in 2013.

For those with questions about possible tax code changes, call any of the local Liberty Tax, H&R Block or Jackson Hewitt centers, all of which will be opening their doors to start filing tax returns at the beginning of the month.

Contact Daily News Military Reporter Amanda Wilcox at 910-219-8453 or amanda.wilcox@jdnews.com. Follow her on Twitter @AWilcox21.